According to various reports, the US administration is attempting to regulate bitcoin. This week, US President Joe Biden is expected to sign an executive order outlining the government’s digital asset strategy.
According to Yahoo Finance, the executive order is expected to direct agencies across the government, including the Departments of Treasury, State, Justice, and Homeland Security, to study cryptocurrencies and a central bank digital currency (CBDC) and develop a government strategy to regulate digital assets.
In August of last year, White House officials began working on a centralised strategy for cryptocurrencies.
Last month, Bloomberg revealed the revelation first, citing people familiar with the situation.
According to the storey, senior administration officials have met several times to discuss the plan, which is being written as an executive order. The directive places the White House at the centre of Washington’s cryptocurrency operations.
Over the last few years, federal agencies have taken a piecemeal approach to digital assets, and Biden’s staff is under pressure to take the lead. Industry executives frequently complain about a lack of clarity in US rules, while some fear that China’s and other countries’ support of government-backed coinage would endanger the dollar’s dominance.
Bitcoin, the world’s largest and most popular cryptocurrency, fell about 1.9 percent to $37,673 as a result of the US action. So far in 2022 (year-to-date or YTD), Bitcoin is down approximately 19 percent, but it is still over 46 percent away from its record high of near $69,000 set in November 2021.
Bitcoin fell to a two-week low as worries of a Russian invasion of Ukraine spurred some analysts to warn that the world’s most valuable cryptocurrency might fall below the $30,000 mark. Over the weekend, the cryptocurrency fell below $40,000 and continued to fall as the Ukraine crisis worsened, contradicting the premise that cryptocurrencies are a safe haven in times of global uncertainty.
According to a separate Bloomberg article, the cryptocurrency policy release was delayed due to a disagreement between White House officials and Treasury Secretary Janet Yellen over the scope of a pending executive order that might include a digital currency.
According to Bloomberg, the late-stage draught of the executive order addresses the economic, regulatory, and national security issues posed by cryptocurrencies. It would require several agencies to provide reports by the second half of 2022.
The Financial Stability Oversight Council, a committee comprised of the chiefs of Washington’s leading financial watchdogs, will conduct a study on the potential systemic implications of digital assets. Another government report would examine at the use of virtual currency for illegal purposes.
